President Donald Trump said Friday he will nominate former Fed governor Kevin Warsh as the next Federal Reserve chair, expecting him to cut rates.[1]
The move matters because a Fed chair who leans toward lower rates could accelerate borrowing, boost stock prices and shape the administration’s broader economic agenda.[2] It also puts the central bank’s independence under a spotlight.
Trump posted the nomination on his Truth Social account, and the Senate has scheduled a confirmation hearing for the following Tuesday in Washington, D.C.[1] The hearing will give senators a chance to question Warsh on monetary policy and his ties to the Trump administration.
"I have known Kevin Warsh for many years and I think he’s the right person to get the Fed moving in the right direction," Trump said.[1] He added that he expects Warsh to pursue interest‑rate cuts to help the economy and support his policy goals.[2]
Warsh, 55, served on the Federal Reserve Board from 2006 to 2011 and is known for a mixed record on rate policy.[3] A recent Yahoo Finance profile notes that he has not always backed lower rates, raising questions about how aggressively he will act if confirmed.[5]
Treasury Secretary Scott Bessent said the president could consider legal action if Warsh fails to keep the Fed independent on rate decisions, and quoted, "It would be up to the president whether to sue Kevin Warsh if he fails to keep the Fed independent on interest‑rate policy."[4]
Senators from both parties are expected to scrutinize Warsh’s past votes and statements during the hearing. A favorable vote could solidify Trump’s influence over monetary policy, while a rejection would signal resistance to overt political control of the central bank.
“"I have known Kevin Warsh for many years and I think he’s the right person to get the Fed moving in the right direction."”
If confirmed, Warsh could steer the Federal Reserve toward a more accommodative stance, potentially lowering borrowing costs, and stimulating growth. However, his appointment also raises concerns about the politicization of monetary policy and the durability of the Fed’s independence, which could affect market confidence and long‑term economic stability.
